7 agencies fail to act on 24 recommendations

Seven government agencies have taken no action to comply with 24 recommendations issued by the Office of the Public Auditor, an OPA report showed.

OPA tracked 70 audit recommendations during the first six months of 2005. It found that only one of the recommendations had been closed. Of the 69 recommendations that remained either open or resolved, 24 were considered delinquent.

OPA’s audit of the Department of Lands and Natural Resources’ submerged land lease agreement for Outer Cove Marina was closed after an arbitration panel issued a decision in favor of the lessee, Marine Revitalization Corp. The decision has been upheld by the Superior Court and negotiation is ongoing between the CNMI government and MRC regarding the arbitration award.

Meanwhile, 69 recommendations remained open or resolved as of June 30, 2005. An open recommendation is one where no action or plan of action, or no time frame for the plan of action, has been provided by an audited department or agency. A resolved recommendation is on in which OPA is satisfied that the audited agency cannot take immediate action, but the agency has established a reasonable plan and time frame for action.

OPA noted, however, that 24 of these open or resolved recommendations are considered delinquent because they have been outstanding for over 180 days. Moreover, the Public Auditor has not been informed by the concerned agency or department of any action being taken to comply with the audit recommendation.

The number of delinquent recommendations as of June 30, 2005 represents a 20-percent decrease, OPA said.

Northern Marianas College is responsible for closing seven of the delinquent recommendations, all of which were issued in 2003.

The Department of Finance accounts for six delinquent recommendations, issued between 1995 and 1999.

The Marianas Public Lands Authority and the NMI Retirement Fund each have four delinquent recommendations. The three remaining delinquencies involve DLNR, Department of Public Health, and the Office of the Governor.

OPA said that the tracking report was issued although the Interagency Audit Coordinating Advisory Group failed to meet during the first six months of 2005.

The coordinating group consists of the presiding officers and minority leaders of the Senate and the House of Representatives, the Finance secretary, and the governor’s special assistant for management and budget. Its task is to review all audit reports issued by OPA and recommend to the governor and the Legislature any changes in laws and regulations which it finds necessary or desirable as a result of its work with OPA.

OPA’s tracking report was the result of follow-up letters and/or discussions with various government agencies with outstanding audit recommendations as of June 30, 2005. The report incorporates agency responses to follow up letters, which OPA received on or before Sept. 16, 2005.